I think there needs to be some balance between the two. I wouldn't get a big-box Wal-Mart Cromoly frame and put DA on it! Likewise if you got a really nice frame like a Cervelo R3 or a Specialized Tarmac and you mounted the "bottom of the heap" Shimano 2200 group, you may need to get your head checked.

With that said, I personally go for better components. Why? Better gruppo usually equates to lighter weight, better shifting performance, and all around nicer builds. That dictates on how enjoyable the ride is because if you really think about it, the gruppo is what you are interfacing on a constant basis and you will be depending on it to shift properly when you need it to. I agree that Taiwanese made frames with the likes of BD or Pedal Force are great quality and when paired with a nice gruppo, it can rival brand name bikes that costs thousands more.